Ra-Pid-Gro Corporation

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IN THE :MATTER OF RA-PID-GRO CORPORATION ET AL.

CONSENT ORDER, ETC. , IN REGARD TO 'lln ALLEGED '"'OLATION OF THE J."'DERAL TRADJ C03D:ISSION ACT Docket 6267. Complaint, Dec. 195. Decision, Feb. 8, 1955 Consent order requiring a corporate :seller in Dans,ile y" to cease misrepresenting in advertising the effectiveness on plants, shrubs, and trees of its Ra-Pid-Gro" chemical fertilzer, the economy afforded by its use, and its superior quality as compared with other fertilzers. Before Ab. E ad J. K olb hearing examiner. 11b. William L. Pencke for the Commission. COJfPLAINT Pursuant to the provisions of the Federal Trade Commission Act and by virtue of the authority vested in it by said Act, the Federal Trade Commission having reason to believe that Ra-Pid-Gro Corporation, a corporation, and Thomas P. Reilly, individually and as an offcer of said corporation, hereinafter referred to as respondents, have violated the provisions of said Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as folJ ows :

PARAGRAPH 1. Ha-Pid-Gro Corporation is a corporation, organized and existing under the la ws of the State of New York. The principal offce and place of business of said respondents in 88 Ossian Street Dansvile, K ew York.

Individual respondent Thomas P. Reilly is president of corporate respondent. He formulates the policies and directs and controls the practices and activities of said respondent. P AU. 2. For more tha,n two years Jast past, said corporate respondent has been and is now engaged in the sale and distribution of a chemical fertilizer, designated Ra- Rip-Gro, designed to be used as a liquid fertilizer by the addition of water.

When sold, respondent J~a-Pid-Gro Corporation ships said product to purchasers thereof located in va.rions States of the United States other than the State of )I ew York. Said respondent maintains, and at all times mentioned herein has maint.ained a sl1bstan tial course of trade in commerce in tid product. 726 FEDERAL TRADE CO:VL\USSION DECISIONS Complaint 51 F. T. C.

Paint. 3. In the course and conc1uet of said business and for the purpose of inducing the purchase of said product, respondents have made and a.re now making many statements and representations concerning said product by means of advertisements inserted in nmvspapers and magazines having a national circulation, and by pamphlets, folders and other advertising material distributed by respondents and their dealers in various States of the United States. Typical, but not an inclusive of such representations, ate the following: Ra-Pid-Gro was * '" * First to combine a complete formula for the feeding of all trees and plants. Ra-Pid-Gro contains all the known chemical trace elements, and vitamins Dece sary for growth and production, and for yigorons, healthy plant life First to put np a complete fertilzer or plant food in higbly concentrated form without a filler.

Fed regularly as directed, your plants wil thrh"c and grow lIndeI' the most adverse conditions, when others are stunted, shriyeling and dying. Yon get results that can t be matched by any other fertiizer or plant food. Ra-Pid-Gro is a miracle working concentrated food tllat helps nature, bring out the best in your flo\Yers, fruits, vegetables and ornamental tree. Ra-Pid-Gro insures success, for it s1)ceds up production and assures an abundant crop.

Saves dying trees, sl1n1bs, many plants giwl1 up for dead 'vii l' espond to applications of H.a-Pid-Gro Save all your trees, shrubs and plants by dipping theil in a solution of Ra-Pid-Gro before planting, Some chemicals in solid form dissolve immediately, Others require month in which to dissolve. Tl1ercfore at no time is a plant geWng a balanced diet f,' om the usual dry fertilzer. The answ-er is liquid fertiizer-composed, not of one chemical or a fe\v chemicals, but aU the required chemicals and trace elements.

Ordinary fertiizers need rain or artificial watering to make them available to plant life.

AU trees and plants require a liqutd diet. It is impossible for them to feed on solids.

Ra-lid- Gro ousoletes former fertilzing methods. First to germinate grass in four days.

se any quantity on foliage and roots-it won t burn. Ra-Pid-Gro costs less.

One pound of Ra.Pid-Gro makes 176 Ibs. of liquid fertilzer, One pound of Ra-Pid-Gro is the equivalent of 100 pounds of any other fertilzer you may have used in the past One pound of Ra-I'id- Gro (at $1.23) is the equivalent of 100 pounds of regular powder fertiizer (at $4.25).

fia-Fid-Gro is 100% usable by plants.

Every bit is 100% plant food and when applied in solution it is immediately absorbed by plant roots.

Ra-Pid, Gro applied to foliage enters the sap stream at once supplying immediately a complete, balanced food formula, RA-PID-GRO CORP. ET AL. 727 725 Complaint Ra-Pid-Gro combines in proper proportions the vitamins necessary for human, animal or plant life. By feeding it to your vegetable garden, you not only benefit your vegetables, but you thereby help overcome the deficiencies in ;your own diet.

PAR. 4. By means of the foregoing representations and Inany others similar thereto but not speciiica11y set out herein, respondents represent, directly or by implication:

1. That Ra-Pid-Gro is a complcte chemical fertilizer, containing all known chemical trace elements and vitamins necessary, for growth, production and feeding of a11 trees and plants; 2. That when Ra-Pid-Gro is fed regularly to plants they wil thrive and grmv under the most adverse conditions, while plants not so treated will shrivel and die;

3. That results are obtained through the use of Ra-Pid-Gro that are s11perior to any other fertilizer;

4. That when trees, shrubs and plants are dipped in Ra-Pid-Gro before planting their growth is assul'erl and when given up for dead wil he savcd through applications of Ra-Pid-Gro; 5. That plants do not receive 11 balanced diet through the use of dry fertilizer;

6. That al1 plant food must be in Jiquid form before it can be utilized by plants and trees;

7. That responrlents' product has made all other fertilizing methods obsolete;

8. That Ra-Pid- G-ro will cause grass to germinate in Jess time than a11 other fertilizers;

9. That Ra-Pid-Gro wil not burn any plant, regardless of the quantity applied;

10. That Ra-Pid-Gro is cheaper than dry fertilizers and that one pound thereof makes 176 pounds of liquid fertilizer, is equal to 100 pounds of any other fertilizer and at the price of $1.25 is the equivalent of 100 pounds of dry fertilizer costing $4.25; 11. That Ra-Pid-Gro when dissolved and applied to plant leaves is absorbed immediately in the sap stream of the plant; 12. That Ra-Pid-Gro in solution is 100% plant food; 13. That Ra-Pid-Gro contains al1 of the vitamins necessary for human and animal life and when used on gardens, the vitamin content of the food grown therein will be increased to the extent that its consump60n will help overcome vitamin deficiencies. PAR. 5. In truth and in fact:

1. Ra-Pid-Gro is not a complete chemical fertilizcr for the feeding of trees and plants as there are trace elements, other than those con- 728 FEDERAL 'trade CO:VllvIISSION DECISIOXS Complaint 51 F. T. C.

tained in said product which are required for tree and plant growth. Moreover, some soils are so . deficient in the trace elements present in respondents' product that the amounts therein are not suffcient to supply the deficiencies. Vitamins are not necessary for growth, production or feeding of trees or plants.

2. The regular application of Ra-Pid-Gro wi1 not cause plants to grow under the most adverse conditions as there arc many conditions which retard or prevent the grmvth of plants or cause them to shrivel and die, other than the absence of fertilizer. 3. There are other fertilizers or plant foods that will produce as satisfactory results as Ra-Pid-Gro.

4. There is no assurance that treees, shrubs or plants, which are dipped in Ra-Pid-Gro, wil grow. Growth is dependent upon their condition and there are many conditions which wil prevent the growth of plants having no relation to the question of fertilization. Plants given up for dead mayor may not be saved by the application of respondents' product depending upon the cause of their condition. Only in case their condition is due to a lack of fertilization and they ean be saved by the application of fertilizer, can they be saved by the application of Ra- Pid -Gro.

5. Some dry fertilizers contain the same ingredients as are present in respondents' product and wil, in the presence of suffcient moisture supplied by rain or irrigation, provide a balanced diet to plants. 6. It is true that all commercial plant food, including that of respondents, require moisture in order to be made available to plants and trees. Respondents' product is mixed with water before application. In the case of dry plant foods the water is applied after application either by rain or irrigation. There is no significant difference in the utilization of the ingredients in the two forms of plant food under these conditions.

7. Ra-Pid-Gro does not make other fertilizing methods obsolete. S. There are other commercial fertilizers which, when properly applied and supplied with suffcient moisture, wil germinate grass in as short a time as respondents' product.

9. Unless used strictly as directed, respondents' product may burn the leaves of plants and the roots of young and tender plants. 10. Based upon the amount of food available to plants, Ra-Pid-Gro does not cost Jess than other commercial fertilizers. One pound Ra-Pid-Gro does not make 176 pounds of liquid fertilizer as practically all of the 176 pounds is water and water is not a fertilizer. One pound of Ra-Pid-Gro is not the equivalent of 100 pounds of all other fertilizers.

RA-PID-GRO CORP. ET AL. 729 725 Decision 11. Not all ofthe ingredients in Ra-Pid-Gro are absorbed by foliage and there are some plants whose foliage wil absorb only a negligible amount of the solution.

12. Ra-Pid-Gro in solution is not 100% plant food as the solution consists principally of water which is not a plant food. 13. Respondents' product docs not contain all of the vitamins neeessary for human or animal life. The vitamins in respondents' product will not increase the vitamin content of vegetables grown in soil to which its said product has been applied and the consumption of food grOWl! in soil to which said product has been applied wil not help overcome vitamin deficiencies.

PAR. G. Respondents, Ra-Pid-Gro Corporation, a corporation, and Thomas P. Reilly, individually and as an offcer of said corporation in the conduct of said business, have been and are in substantial eompetition in commerce with other corporations and with individuals partnerships and others engaged in the sale of fertilizers. PAR. 7. The use by respondents of the foregoing false, misleading and deceptive statements and representations has had, and now has the tendency and capaeity to mislead and deceive the purchasing public into the erroneous and mistaken belief that such representations were and arc true and into the purchase of substantial quantities of respond:" eIlts' product because of such erroneous and mistaken belief. As a result thereof, trade has been unfairly diverted and is now being diverted to respondents from their competitors in commerce and substantial injury has been and is being done to competition in commerce. PAR. 8. The aforesaid acts and practices of respondents, as herein alleged, are all to the prejudice and injury of the public and constitute unfair methods of competition and unfair and deceptive acts and praetices in commerce within the intent and meaning of the Federal Trade Commission Act.

DECISION OF THE COMMISSION Pursuant to Rule XXII of the Commission s Rules of Practice nd as set forth in the Commission s "Decision of the Commission and Order to File Report of Compliance, dated February 8 , 1955, the initial decision in the instant matter of hearing examiner Earl Kolb, as set out as follows, became on that date the decision of the Commission.

!XITIAL DECISION BY EARL J. KOLE, HEARING EXAMINER The complaint in this proceeding charges the respondents, Ra-Pid- Gro Corporation, a earp oration, and Thomas P. Reilly, an individual 730 FEDERAL TRADE COMMISSIOK DECISIOKS Order 51 F. T. C.

and as an offcer of said corporation, with unfair methods of competition and unfair and deceptive acts and practices in violation of the Federal Trade Commission Act, in the advertising of a chemieal fertilizer, designated Ra-Pid-Gro.

In lieu of submitting an answer to said complaint, respondents -entered into a s6puJation Tor a consent order with counsel in support of the complaint, which was duly approved by the Director and Assistant Director of the Bureau of Litigation. This stipulation covers all the charges of the complaint except the allegation of falsely representing that Ra-Pid Gro is a complete chemical fertilizer. It is now con ceded by the attorneys supporting the complaint that the representation that R.a-Pid-Gro is a complete chemical fertilizer is not misleading as that term is understood by the fertilizer trade. By the terms of said stipulation the respondents admitted all the jurisdictional allegations set. forth in the complaint, waiving hearing before the hearing examinm' or the Commission, the filing of exceptions or oral argument bcfon the Commission and all further and other procedure before the hearing examiner and the Commission to which respondents may be entitled under the Federal Trade Commission Act Dr the Rules of Practice of the Commission. In s"id stipulation the respondents further agreed that the order hereinafter set forth shall ha.ve the same force and effect ns if made after a full hearing, presentation of evidence and findings and conclusions thereon, and specifically waived any and an right, power and privilege to challenge or contest tbe validity of said order.

It was further provided that said stipulation, together with the complaint, shall constitute the entire record herein; that the order hereinafter set forth may be entered in disposition of this proceeding without further notice; that the complaint herein ma.y be used in construing tho terms of said order which may be altered, modified or set aside in the manner prescribed by statute for orders of the Commission. The Hearing Examiner having com:iderec1 said stipulation for consent order, and being now duly advised in the pre.mises, hereby accepts sflid sUpulation for eon sent order and issues the following order in conformity therewith:

ORDER It is onlered That thc respondent corporation, Ra-Pid- Gro Corporation, a corporation 1nd its offcers, and Thomas Reilly, individually a.nd as an offcer of said corporation, and said respondents agents, representatives and employees, directly or through any C01'pO. rate. or other device, in connection with the offering for sale, sale or djstriblltion in commerce, as "commerce" is defined in the Federal RA-PID-GRO CORP. ET AL. 731 OrderTrade725Commission Act, of the chemical fertilizer designated Ra-Pid- Gro, or any other product containing substantially the same ingredients or possessing substantially the same properties, do forthwith cease and desist from representing, directly or by implication: 1. That Ra-Pid-Gro contains all of the known trace elements necessary for the gro\vth production or feeding of trees or plants. 2. That vitamins are necessary for the growth, production or feeding of trees or plants.

3. That application of Ra-Pid-Gro wil cause plants to grow undey any circumstances other than a lack of fertilizer. 4. That other fertilizers or plant foods wil not produce as satisfactory results as Ra-Pid-Gro.

5. That the dipping of trees, shrubs or plants in Ra-Pid-Gro befom planting will assure growth.

6. That plants given up for dead will be saved by applying Ra-Pid- Gro, except in the case of plants that can be saved through the application of a fertilizer.

7. That dry fertilizers do not provide a balanced diet to plants. 8. That a fertilizer must be applied in liquid form in order that plants may utilize the ingredients.

9. That 1ia Picl-Gro makes other fertilizing methods obsolete. 10. That Ra-Pic1-Gro causes grass to germinate in a shorter time than aJl other commercial fertilizers.

11. That the application of Ra-Pid-Grow will not burn plants unless expressly limited to its use as directed.

12. That Ra-Pid-Gro costs less than other commercial fertilizers. 13. That aile pound of Ha-Pid-Gro makes 176 pounds of liquid fert.ilizer or any other amount that is in excess of the actual amollnt of fert.ilizer present.

14. That one pound of Ha-Pid-Gro is equivalent to 100 pounds of other fertilizer or to any other number of pounds that is contrary tG the fact.

15. That a1J of the ingredients in a solution of Ra-Pid-Gro are absorbed when spray on foliage or tlmt the fo1i lge of all plants will absorb significant amounts of the solution. 16. That R.a-Pid-Gro contains all the vitamins necessary for human or animal life or that the eonsnmption of food produced on soil to which said product has been applied wdl help overcome vitamin deficiencies because of such application.

Order 51 F. T. C.

ORDER TO FILE REPORT OF COMPLIANCE It is orde"ed That tho respondents heroin shall within sixty (60) days after servico upon them of this order, fie with tho Commission a report in writing setting forth in detail the manner and form in which they have complied with the order to cease and desist (as required by said declaratory decision and order of February 8, 1955J. CROvYN ZELLERBACH CORP. ET AL. 733 Order Ix THE latter OF CROWN ZELLERBACH CORPORATION ET AL.

Docket 5421. Complaint, Feb. 13, 1946-order, Feb. 9, 1955 Order of dismissal-following Supreme Court' s reversal in the Automatic Canteen Company of America case-of complaint charging a manufacturer of paper and paper products and its t\VO subsidiaries, with offces in California, with violating sec. 2 (f) of the Clayton Act as amended by refusing to purchase paper and paper products from sellers unless they \were granted prices lower than those paid by their competitors, thus accepting and receiving prohibited discriminations in price.

Before Aft. Everett F. Haycraft hearing examiner. Mr. Edlvard S. Ragsdale and Mr. Oecil G. Miles for the Commission. llfr. Philip 8. Ehrlich, Mr. AlbeTi A. Axelrod, Mr. Ricardo J. Hecht, Mr. Philip 8. Ehrlich, Jr. and lift. Irving Rovens of San Francisco, Calif. h. Paul R. Hcmnel of 'Washington, D. C., and San' yet ll1arlon of cw York Cit.y, for respondents. ORDER DIS2\IISSIXG COl\IPLAIXT This matter having come on to be heflrd by the Commission upon its revimv of the hearing examiner s initial decision herein and upon respondents' appeal from said initial decision, and upon briefs and oral argument of counsel; and It appearing to the Commission that the decision of the Supreme Court of the United States in the matter of A1domatic Oanteen Oompany of America v. Fedeml Tmde Commission 346 U. S. 61 (1953), and the dismissal by the Commission of Count II of the complaint in the matter of Automatic Oanteen Oompany, Docket 1\0. 4933 (January 12 , 1955) as a result of s id decision, require that the complaint in this proceeding be dismissed:

It is ordered, That the complaint herein be, and it hereby is dismissed.

Commissioner Mead dissenting and Commissioner Howrey not participating.

1 See p. ri74 8!/prn.

&, &:

Decision 51 F. T. C.